We kicked off the day with MBA 30-Year Mortgage Rate, MBA Mortgage Market Index, MBA Mortgage Refinance Index, MBA Purchased Index, and MBA Mortgage Applications at 6:00 A.M., Core Inflation Rate MoM & YoY, Inflation Rate MoM & YoY, Real Earnings, CPI s.a. & CPI at 7:30 A.M., EIA Energy Stocks at 9:30 A.M.,17-Week Bill Auction at 10:30 A.M., 10-Year Note Auction at 12:00 P.M., FOMC Minutes & Monthly Budget Statement at 1:00 P.M.

Photo by Adrian Infernus on Unsplash

On the Corn Front all in all the USDA corn data was not impressive with traders expectations. Argentina’s numbers came in a little better than the street expected but still was still no surprise to the actual. Brazil is pretty much done as the second harvest is moving while their production remained the same. Funds reversed their short position before the report and are taking less heat in the overnight wit corn in the green for the moment. Exports to China will continue to be a wildcard as Brazil’s 2^nd harvest is expected to exceed the USDA’s forecast. A wet cold front is expected in the Midwest corn belt this weekend and slow plantings. Tomorrow’s Export Sales will be of interest to support corn prices. In the overnight electronic session the May corn is currently trading at 654 ¼ which is 3 ¼ cents higher. The trading range has been 654 ½ to 648 ¾.

On the Ethanol Front the USDA maintained it’s forecast for 2022-23 corn use for ethanol production in yesterday’s WASDE report, had their outlook for reduced imports and reduced food, seed and other (FIS) use. The forecast for stocks remained unchanged. The USDA lowered its forecast for corn imports by 10 million bushels based on observed trade to date. Feed and industrial use is unchanged at 5.275 billion bushels based on indicated disappearance during the December February quarter. FSI is lowered for corn use for glucose, dextrose and starch. The agency maintained its forecast that 5.25 million bushels of corn will go to fuel ethanol production for 2022-23 down from 3.326 billion bushels for 202o-21. While supply and use falling by the same amount, ending stocks are unchanged at 1.342 billion bushels. The season-average from price is unchanged at $6.60 oer bushel. There were no trades or open interest in ethanol futures.

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